Traders are planning for Friday's US non-farm payrolls report, and major currencies hedge rising costs on a one-day basis. The overnight volatility of EUR/USD rose as high as 526 basis points to 11.58%, the highest since July 29; the indicator is expected to record its strongest closing since the beginning of March. The corresponding volatility of GBP/USD rose 479 basis points to 11.52%, the second highest level since late July, or the highest closing since May. The USD/CHF volatility was reported at 12.12% and is expected to record the highest closing in seven months. Traders focus on non-agricultural data, which is the core basis for judging whether the market is pricing the Fed's interest rate hike this month; the current probability of interest rate hikes is 36%. After the US PCE inflation data fell short of expectations, this probability fell from about 56%.

Traders are planning for Friday's US non-farm payrolls report, and major currencies hedge rising costs on a one-day basis. The overnight volatility of EUR/USD rose as high as 526 basis points to 11.58%, the highest since July 29; the indicator is expected to record its strongest closing since the beginning of March. The corresponding volatility of GBP/USD rose 479 basis points to 11.52%, the second highest level since late July, or the highest closing since May. The USD/CHF volatility was reported at 12.12% and is expected to record the highest closing in seven months. Traders focus on non-agricultural data, which is the core basis for judging whether the market is pricing the Fed's interest rate hike this month; the current probability of interest rate hikes is 36%. After the US PCE inflation data fell short of expectations, this probability fell from about 56%.